Iranians in 15 property deals in Cyprus, JVs underway
Residency from 300,000 euros?
The influx of 834 Iranians to Cyprus during the Nowrooz Iranian New Year celebrations in mid-March helped boost last month’s tourism figures, but also led to 15 property deals where Iranian nationals snapped up bargains in Cyprus.
“In addition, I have information that negotiations are under way for a further 20 properties to be sold to Iranian nationals,” said Commerce, Industry and Tourism Minister Antonis Paschalides. Speaking at a news conference to outline his Ministry’s efforts to attract foreign investors, Paschalides made particular mention of the role that Cyprus can play to become a gateway for Iranians looking to enter the EU.
He said that discussions are also underway for two joint ventures with Cypiot companies, one of which is in the paints business.
Paschalides said that during the Nowrooz celebrations, “up to now, 834 Iranian nationals came on charter flights, and they all left”, in an obvious response to comments that Iranians would arrive as tourists and seek political asylum once here.
Iran’s Ambassador to Cyprus, Ali Reza Bikdeli had previously told the Financial Mirror that around 6,000 Iranian tourists visit Cyprus every year. Bikdeli had said that if direct flights were established, the number could rise to 20,000.
The Financial Mirror has information that a major property developer is organising charter flights from Tehran directly to Cyprus, which will further boost tourist inflows from Iran and at the same time, lead to more property sales to counter the sharp decline in real estate activity.
Residency… at a price
Reliable sources have also told the Financial Mirror that according to an unofficial understanding, Iranians buying property worth at least EUR 300,000 will be eligible to receive a residency permit in Cyprus.
Such a practise, if implemented, will help increase the number of Iranians abandoning Dubai and shifting their investments to Cyprus, as a valid residency permit of Cyprus would allow them easier travel to the rest of the EU.
This is sure to irk the Americans who are loathe to allow relations between Cyprus and Iran become even closer, but proponents of property-for-residency arrangements say that the U.S. is the first to practise it.
“The Americans give residency to foreigners buying property or investing money of up to $1 mln, while the British recently raised the minimum investment level from GBP 500.000 to GBP 1 mln. Everybody is doing it, including the Canadians and recently the Spanish, so why point the finger at Cyprus,” said a property developer who wants the Cyprus government to openly advertise the arrangement instead of spreading it through word of mouth.
Technology parks
“The Ministry’s efforts in terms of new investment, tourism and new export and service markets will not stop, not even for a minute”, said Paschalides, presenting a review of the Ministry’s performance for the previous year.
Regarding the task of attracting foreign investment, Paschalides said that “there is tremendous investment interest from both large companies and large countries”, apparently referring to potential investments reported recently in the press, relating to Qatar and Kuwait.
He also said that this year, “flesh will be put on the bones” of the plan to create a technology park, adding that there is interest from “very large foreign companies”, including Google and Microsoft. The plan for the creation of a technology park was approved by the previous government in February 2006, with the stated aim of making Cyprus a centre for software development and hi-tech business. The chosen location of the park is Pentakomo, east of Limassol.
Company registrations
Paschalides added that though new registrations have dropped at Company House, these are expected to pick up again once Cyprus becomes an equal player with other jurisdictions and cuts the time for a new company registration from the 2-3 days at present to same-day by the end of the year, “even within the hour.”
He has also suggested that law on bankruptcies be revised to allow people who have recovered from a previous demise to return to the market in four years.
The aim is to eventually have all applications made online, he said, adding that “the long queues must stop.”
Industrial zones
Paschalides said that the plots within the industrial zones are in great demand and that after Easter, all the areas will be inspected. Those companies that no longer justify their presence in the industrial zones will be removed, as the black market for these properties have seen prices propel by 50 times.
He said that the focus in 2009 will be to boost industry, where exports enjoyed an 8% increase last year, mostly due to halloumi, pharmaceuticals, meat products and other raw materials.
Tourism – great escapes
In the tourism area, Paschalides said that his ministry and the Cyprus Tourism Organisation will enhance their campaigns, but that overseas marketing efforts will from now on be focused.
“If we place advertisements and there is no response, we will cut that market and move on to the next,” he said.
“Already, the hoteliers will announce new summer rates this week, while the government will subsidise the hotel bed levy paid to local municipalise as from May and until April 2010.
Another incentive is a new programme that is partly EU-funded, for the creation of new destinations for which there is interest from airlines that do not operate to Cyprus.
Paschalides concluded that over the next few weeks, the government will announce the hosting of major international events, mostly in the leisure sector, that will boost awareness about Cyprus and encourage more tourism arrivals.
